Kimon Guelle

Kimon Guelle asked about the lease-up trends for the recently developed Nantucket property versus original expectations and its stabilization timeline. He also inquired if managed REIT AUM growth would be targeted at specific REITs or broad-based, and sought additional color on the year-to-date performance of Canadian markets.

Answer

James Barry, CFO and Treasurer, stated it's too early to assess Nantucket's lease-up due to its recent opening in December and seasonality. Michael Schwartz, Founder, Chairman, and CEO, clarified SmartStop has a minority interest and manages the property. He explained that 2025 AUM growth was impacted by the IPO and a new broker-dealer, but DST programs saw nice growth. They are guiding for a modest $60 million AUM increase in 2026, driven by DSTs and Strategic Storage Trust X. David Corak, Senior Vice President of Corporate Finance and Strategy, reported that GTA occupancy outperformed the U.S. year-to-date, running in the mid-90s (up 80 bps YOY), with in-place rates also outperforming, and a more pronounced sequential occupancy increase in Canada from December to January.

Kimon Guelle asked about the lease-up trends for SmartStop Self Storage REIT's recently developed Nantucket property compared to original expectations, and when it is projected to reach full stabilization. He also inquired about the managed REITs' AUM growth, specifically whether it would be targeted at particular managed REITs or spread across the existing three.

Answer

James Barry, CFO and Treasurer, noted that the Nantucket property, located on an island with significant seasonality and opened in December, is 'still too early to tell' regarding lease-up trends, but they are actively monitoring it. Michael Schwartz, Founder, Chairman, and CEO, clarified that SmartStop holds a minority interest in the Nantucket joint venture and manages the property. Regarding AUM growth, Michael Schwartz explained that they reached $1 billion in AUM (based on cost basis) and anticipate growth in 2026, driven by four additional Canadian developments over the next 12-18 months. He detailed the success of their Delaware Statutory Trust (DST) platform, with Blue Door One completed, Blue Door Two one-third sold, and Blue Door Three recently launched. He guided a modest AUM increase of approximately $60 million for 2026, balancing new DSTs, preferred investments in Strategic Storage Trust VI, and the relaunch of Strategic Storage Trust X.